Arotech Corporation (NasdaqGM: ARTX), a provider of quality defense and security products for the military, law enforcement and homeland security markets, announced today that its Battery and Power Systems Division has received orders amounting to over $2 million for batteries and chargers. The orders were primarily from two leading defense companies and manufacturers of military equipment, which are existing customers of Arotech.

One of the orders was for the development and manufacture of Lithium-Ion based batteries as replacements for Lead-Acid batteries for use in military vehicles. Arotech's Lithium-Ion batteries together with its battery management technologies, provides a much higher energy density than similarly sized Lead-Acid batteries, with a high safety profile as well as low maintenance requirements.

Robert S. Ehrlich, Arotech's Chairman and Chief Executive Officer commented, "We have invested in the development of batteries for military vehicles using Lithium-Ion technology replacing the more traditional Lead-Acid chemistry. While Lithium-Ion provides a much higher energy density, the challenge is in managing and protecting what is a more volatile battery chemistry. The technology underpinning our battery management systems which protect these batteries is sophisticated, advanced and ideal for the tough military environment."

Continued Mr. Ehrlich, "These customers are top defense manufacturers with sales of equipment throughout the world for use by various militaries using advanced technologies. Their equipment is expected to be of the highest caliber and failsafe. The fact that our customers continue their purchase of our batteries means they trust the reliability, quality and safety of our products."